LAC Digital Economy: Country Diagnostics

PublicDisPculobsliucrDeisAculotshuorreizAeudthorized PPububliclicDDisiscclloossuurreeAAuuththoorirziezded PuPbluicbDlicisDcloissculroesAuurethAoruiztehdorized PublicDisPculobsliucreDAisucthloosriuzreedAuthorized DIGITALECONOMYFORLATINAMERICAANDTHECARIBBEAN CountryDiagnostic:Jamaica April,2024 Administeredbn ReportNo: DigitalEconomyforLatinAmericaandtheCaribbeanCountryDiagnostic:Jamaica April2024DDT ©2024TheWorldBank 1818HStreetNW,WashingtonDC20433 Telephone:202-473-1000;Internet:www.worldbank.orgSomerightsreserved ThisworkisaproductofthestaffofTheWorldBank.Thefindings,interpretations,andconclusionsexpressedinthisworkdonotnecessarilyreflecttheviewsoftheExecutiveDirectorsofTheWorldBankorthegovernmentstheyrepresent.TheWorldBankdoesnotguaranteetheaccuracyofthedataincludedinthiswork.Theboundaries,col-ors,denominations,andotherinformationshownonanymapinthisworkdonotimplyanyjudgmentonthepartofTheWorldBankconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries. RightsandPermissions Thematerialinthisworkissubjecttocopyright.BecauseTheWorldBankencouragesdisseminationofitsknowl-edge,thisworkmaybereproduced,inwholeorinpart,fornoncommercialpurposesaslongasfullattributiontothisworkisgiven. Attribution—Pleasecitetheworkasfollows:“WorldBank.2024.LACDigitalEconomy:CountryDiagnostics:Jamaica.©WorldBank.” Allqueriesonrightsandlicenses,includingsubsidiaryrights,shouldbeaddressedtoWorldBankPublications,TheWorldBankGroup,1818HStreetNW,Washington,DC20433,USA;fax:202-522-2625;e-mail:pubrights@worldbank.org. TABLEOFCONTENTS ACKNOWLEDGEMENTS������������������������������������11ABBREVIATIONS����������������������������������������12EXECUTIVESUMMARY������������������������������������15OVERVIEW�������������������������������������������181�INTRODUCTION���������������������������������������36 2�DIGITALINFRASTRUCTURE��������������������������������43 2.1.Theimportanceofdigitalinfrastructure:EnablinginclusivedigitaltransformationinJamaica44 2.2.Currentstateofdigitalinfrastructure:Highpricesandlowqualityandusageofbroadbandservices arebarrierstoinclusivedigitaltransformation45 2.3.Recommendations:Improvingdataanddeviceaffordability,expandingaresilientbackbonenetwork, andstrengtheningtheinstitutionalandlegalframework55 3�DIGITALPUBLICPLATFORMS�������������������������������60 3.1.Theimportanceofdigitalpublicplatforms:Improvingservicedeliveryandcoregovernmentsystems61 3.2.Currentstateofdigitalpublicplatforms:Opportunitiestoimproveservicedeliveryandcoregovernmentservicesthroughdigitaltransformation62 3.3.Recommendations:Clarifyingthepoliticalandinstitutionalauthority,centralizingmanagement ofICTassets,andadoptinga“building-blocks”approachtoservicesonline74 4�DIGITALFINANCIALSERVICES������������������������������81 4.1.Theimportanceofdigitalfinancialservices:Keyenablerforfinancialinclusion82 4.2.Currentstateofdigitalfinancialservices:Towardfinancialinclusionthroughtheinteroperability ofJAM-DEXaccounts,paymentinstruments,andpaymentservices83 4.3.Recommendations:Enhancingpaymentsysteminfrastructure,expandingaccessfornon-bankpaymentserviceproviderstotheACH,andupdatingthelegal/regulatoryframeworkforfintechandopenbanking93 5�DIGITALBUSINESSES�����������������������������������100 5.1.Importanceofdigitalbusinesses:Promotingproductivityandeconomicinclusion101 5.2.Currentstateofdigitalbusinesses:Limiteddigitalbusinessmaturityandachallenging enablingenvironment102 5.3.Recommendations:Enhancingthebusinessenvironment,expandingthesupportecosystem, andcatalyzingdigitalmarketdevelopmentopportunities113 DigitalEconomyforLatinAmericaandtheCaribbean-CountryDiagnostic:Jamaica4 6�DIGITALSKILLS��������������������������������������117 6.1.Theimportanceofdigitalskills:Developingdigitalskillstobuildthefoundation foratechnology-enabledsociety118 6.2.CurrentstateofdigitalskillsinJamaica:Uncoordinatedeffortstoaddress thehighdemandforandlowsupplyofdigitalskills119 6.3.Recommendations:Creatinganationaldigitalskillsstrategytoimprovecoordination aroundasharedvision128 7�TRUSTENVIRONMENT����������������������������������136 7.1.Theimportanceofatrustenvironment:Enablingthedigitaleconomybyupholding foundationalrights137 7.2.CurrentstateofthetrustenvironmentinJamaica:Progressthroughthedataprotectionframework138 7.3.Recommendations:AlignwithinternationalstandardssuchastheBudapestConvention andidentifycriticalinformationinfrastructuresectors154 REFERENCES����������������������������������������161ANNEXES�������������������������������������������166 DigitalEconomyforLatinAmericaandtheCaribbean-CountryDiagnostic:Jamaica5 LISTOFFIGURES Figure1.1.MechanismsofDigitalTechnologiesandGrowth37 Figure1.2.PillarsoftheDigitalEconomy41 Figure2.1.DataInfrastructureSupplyChain44 Figure2.2.4GMobileCoverageandMobileBroadbandPenetration202245 Figure2.3.FixedHouseholdBroadbandPenetrationinJamaicaversusPeers,%46 Figure2.4.FixedCoveragebyTechnology46 Figure2.5.InternationalBandwidthUsed,Mbpsper100Inhabitants,202146 Figure2.6.DataPricesasaShareofAverageMonthlyI